Holden in Australia has reported a full year loss of $A152.8 million, after a write down of $A226 million.
Overall, more than 1.1 million vehicles were sold last year but revenue dropped from $A4.3 billion to $A4 billion due to lower sales of Commodore and Cruze models.
However, Holden insists it will keep making cars in Australia.
Chief financial officer George Kapitelli said Holden remained committed to a long-term future in Australia despite the company being exposed to foreign competition.
AAP reports Holden announced a month ago that it would axe 400 jobs in Adelaide and another 100 in Melbourne.
Another 170 jobs were axed in November.
South Australian Premier Jay Weatherill said he was in negotiations with Holden on the future of $275 million in state and federal grants.
"It's a very tough market and manufacturing in Australia is really struggling at the moment," Australian Manufacturing Workers' Union South Australian secretary John Camillo told AAP.
"Holden needs to rethink what they need to do to get that market share."
The Commodore dropped out of Australia's top-10 selling cars in March. Last year the company relinquished its run as the nation's No.1 seller, after 15 years.
Imported Toyota Corolla and Hyundai i30 consistently outsell the Cruze.
Over the past decade, Holden received $A1.8 billion in federal and state government assistance.